Community Oncology Practices Face Financial Pressure from Policy Changes and Medicare Drug Price Negotiations
Community oncology practices are experiencing significant financial pressure due to a confluence of policy changes, including drug price negotiation, Medicaid coverage adjustments, insurer utilization management, and 340B reform. According to oncology policy leaders at The American Journal of Managed Care’s annual Patient-Centered Oncology Care conference, reimbursement could decrease by 30% to 40% without legislative intervention. The Part D component of the Inflation Reduction Act (IRA) is already complicating planning, with Medicare-negotiated prices for several significant oral oncolytics, such as palbociclib (Ibrance), enzalutamide (Xtandi), pomalidomide (Pomalyst), and acalabrutinib (Calquence), set to take effect in 2027. These changes are forcing practices to adapt to new financial realities and operational challenges. Insurer utilization management, particularly prior authorization and step therapy, continues to burden practices, despite pledges for reform from the Department of Health and Human S...